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US Tells India It's Mulling Caps On H-1B Visas For Nations That Force Foreign Companies To Store Data Locally (reuters.com) 238

PolygamousRanchKid shares a report from Reuters: The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade. India, which has upset companies such as Mastercard and irked the U.S. government with stringent new rules on data storage, is the largest recipient of these temporary visas, most of them to workers at big Indian technology firms.

A Washington-based industry source aware of India-U.S. negotiations also said the United States was deliberating capping the number of H-1B visas in response to global data storage rules. The move, however, was not solely targeted at India, the source said. Most affected by any such caps would be India's more than $150 billion IT sector, including Tata Consultancy Services (TCS) and Infosys Ltd, which uses H-1B visas to fly engineers and developers to service clients in the United States, its biggest market. Major Silicon Valley tech companies also hire workers using the visas. Since last year, the Trump administration has been upset that U.S. companies such as Mastercard and Visa suffer due to regulations in several countries that it says are protectionist and increasingly require companies to store more data locally. India last year mandated foreign firms to store their payments data 'only in India' for supervision, and New Delhi is working on a broad data protection law that would impose strict rules for local processing of data it considers sensitive.
Senior Indian government officials were briefed last week on a U.S. plan to cap H-1B visas issued each year to Indians at between 10% and 15% of the annual quota. Currently, there is no country-specific limit on the 85,000 H-1B work visas granted each year, and an estimated 70% go to Indians.
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US Tells India It's Mulling Caps On H-1B Visas For Nations That Force Foreign Companies To Store Data Locally

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  • so .... (Score:3, Insightful)

    by Anonymous Coward on Thursday June 20, 2019 @09:08PM (#58797164)

    Blackmail basically

    • Re:so .... (Score:5, Interesting)

      by nehumanuscrede ( 624750 ) on Thursday June 20, 2019 @09:14PM (#58797200)

      I wouldn't call it Blackmail as much as I would call it removing the favored advantage India has in the H-1B market.

      • Re: (Score:2, Informative)

        by Cyberax ( 705495 )
        What "favored advantage"? India participates in H1B just as any other country.
        • Re:so .... (Score:5, Interesting)

          by AmiMoJo ( 196126 ) on Friday June 21, 2019 @03:43AM (#58798072) Homepage Journal

          It will be interesting to see if they apply the same conditions to Europe. We have much stronger privacy rules so some data has to be stored here and can't be exported. Not to mention us blocking US courts' access to data stored in the EU.

          • Re:so .... (Score:5, Informative)

            by ranton ( 36917 ) on Friday June 21, 2019 @08:26AM (#58798770)

            It will be interesting to see if they apply the same conditions to Europe. We have much stronger privacy rules so some data has to be stored here and can't be exported. Not to mention us blocking US courts' access to data stored in the EU.

            Considering the European country with the most H1B visa holders (UK) has less than 1% of the total H1B beneficiaries as India, the US could lower country caps significantly without affecting any European countries. Indian citizens hold about 75% of all H1B Visas so they are likely the only ones who will be affected.

        • by jythie ( 914043 )
          High value in education gives them a big advantage over the US where education is seen as tool of godless liberals.
      • But if they comply with it. It will have been blackmail.

        Face it. Storing data locally makes sense. Americans want their data stored locally. And so does every population in the World.

        • Face it. Storing data locally makes sense. Americans want their data stored locally. And so does every population in the World.

          I HRTDFA but everybody can store their data wherever they choose without penalty. If people are storing their data locally because they *legally have to*, then there is a penalty.

          • Re:so .... (Score:5, Insightful)

            by rtb61 ( 674572 ) on Friday June 21, 2019 @01:36AM (#58797832) Homepage

            US total control over the entire planetary population, yeah go fuck yourselves. Every country on the planet should demand that their citizens data is only stored and processed locally and never ever exported. US trying to force it's corrupt laws in other countries at the behest of corrupt US corporation, yeah, they can both go fuck themselves.

            • US total control over the entire planetary population, yeah go fuck yourselves.

              As someone informed me, the US is the most powerful superpower on this planet and so can fuck everyone at will. If the US can't win the game which was originally designed/promoted by the US, the US will just slap you with some bad labels and change to a new game behind you. What can you do?

              I think Hitler also thought the same way.

              • which was originally designed/promoted by the US

                I hear this every once in a while and honestly it makes no sense. The more likely scenario is that the US is just better at playing a game that has always existed.

                The US is a meager 330mil; ~2.5x the island nation of Japan! And it is heavily fragmented. Calling a New Yorker or Texan an American isn't much different than calling a Spaniard a European. There are two major political parties at the national level, but each is at least fragmented into three units.

                There is no official language. There are more

          • HRTDFA? I tried googling it but I can't find a definition for that acronym.

      • Re:so .... (Score:5, Interesting)

        by Impy the Impiuos Imp ( 442658 ) on Friday June 21, 2019 @05:11AM (#58798232) Journal

        I wouldn't call it blackmail so much as do as I say not as I do.

        Every time the US demands to filch through data here, or on foreign servers, other nations think, "Hmmmm...bonus!" and do it to. Some, not this case, are less than savory.

    • Comment removed (Score:5, Insightful)

      by account_deleted ( 4530225 ) on Thursday June 20, 2019 @09:29PM (#58797260)
      Comment removed based on user account deletion
      • Re: so .... (Score:3, Insightful)

        by Anonymous Coward

        This is a government which thinks tarrifs are working..

      • by Anonymous Coward

        They're essentially saying "Hey, if you force Google/Microsoft/etc to do things it doesn't want to do, then we'll, uh, make things worse for them. Yeah. That'll learn 'em."

        You presume Google/Microsoft/etc actually WANT to hire H1-B's. I would posit that they really don't want to hire cheap, low quality engineers, but instead, they feel they are compelled to do so because if they don't cut costs like everybody else is doing, the competition will maybe make more profit than they would and eventually they'll get taken over by the company that built up the largest cash reserve. It's a race to the bottom.

        Take away H1-B's equally from everybody and suddenly everybody can breathe a

        • American engineers can try to get their jobs back

          Engineering unemployment in America is about 2%.

          • H1B workers are going to be worse (training, language skills, experience). The purpose of the H1B visa program is not to replace Americans, it's to drive down the wages and benefits of (superior) American tech workers by forcing them to compete with workers from the third world. And demonstrably has done so.
            • by ranton ( 36917 )

              The purpose of the H1B visa program is not to replace Americans, it's to drive down the wages and benefits of (superior) American tech workers

              The alternative is a repeat of manufacturing where a significant portion of the industry moves overseas if US wages for software developers grow too much. Software engineers are still very highly paid in the US, even with H1Bs dragging down wages. The only profession which sees most of its practitioners making more money is in medicine, and that is only maintainable by significantly limiting the number of doctors who are trained and licensed each year. We pay for that with much higher medical costs than mos

      • Re:so .... (Score:5, Informative)

        by ShanghaiBill ( 739463 ) on Thursday June 20, 2019 @10:38PM (#58797468)

        You presume India benefits from H1-Bs

        India receives about $65 billion per year in remittances. That is about 3% of their GDP.

        ... as opposed to outsourcing, which is probably what most corporations who make heavy use of H1-Bs would do

        India is not the only source of H1Bs. Companies will likely substitute Filipinos, Vietnamese, or Mexicans for Indians before they will outsource. When they do outsource, there is a big benefit to keep it closer, so Juarez instead of Mumbai for many jobs (it is not all software).

        • India is not the only source of H1Bs. Companies will likely substitute Filipinos, Vietnamese, or Mexicans for Indians before they will outsource. When they do outsource, there is a big benefit to keep it closer, so Juarez instead of Mumbai for many jobs (it is not all software).

          Indians account for about 70% of all H-1B applications and visas. The overwhelming majority of those Indians work for Indian consulting companies. Although these companies could in theory hire non-Indians, their employees tend to be overwhelmingly Indian, with some of these companies approach 99% Indian origin for their H-1B employees. The interesting question is whether these Indian companies would change to hiring non-Indians to skirt the per-country quota, or if their goal is to only target H-1B visas

    • And blackmail that might backfire. Here in Australia the general rule with government outsourcing is that data about Australians must be held in Australia where they are subject to Australian privacy (or lack therof) laws. This is *perfectly reasonable*. Would this disqualify Australians from accepting jobs in the US, or even for Australian companies setting up in the Us and hiring Americans?

      That's a lot of collateral damage

      • No, Australians with skills get higher quality visas than these ones.

      • by ranton ( 36917 )

        First off, Australians I have worked with get E3 visas, which is only available to Australians. So none of these rules would apply to them.

        Second, India receives over 75% of all H1B visas, so if the US were to lower the caps by even 80% no other country would be affected.

    • The State Department already made an announcement that no such policy is under consideration, and they strictly do not consult with individual countries over visa policy in the way described.

      I recommend being skeptical until more information is available.

    • I want the money in your wallet. I offer you a candy bar. "Blackmail!"

      Not every exchange is blackmail.

    • Blackmail basically

      By this standard, every instance of international trade is blackmail:

      Dubai refuses to sell oil to Italy unless Italy pays them money: blackmail!

      The US refuses to sell (more) arms to Saudi Arabia until they stop bombing Yemen: blackmail!

      Russia refusing to sell natural gas to Ukraine unless they negotiate transit payments for gas destined for Germany: blackmail!

      Australia refuses to let company mine and sell coal to China unless they comply with local environmental regulations: blackmail!

      Cou

    • India isn't satisfied with outsourced jobs, they want to own the businesses themselves (which is perfectly reasonable); the claim that it's about data privacy is just an excuse.

      The US is telling them if they want to do business that way it's their prerogative, but actions have consequences.

  • it's absurd that 70% of h1bs go to indians. the list of things trump has done right is short but this is a good start.

    • This will be fun - it will be refreshing to open up the H-1B visa lottery to allow more non-Indians into the country thru this program.

      Interesting to note it doesn't limit the total number of visas, just the number from countries that meet certain conditions.

      • Stop calling them "indians". hindus have nothing to do with Native Americans.

        • Re: (Score:2, Insightful)

          by Anonymous Coward

          Uhh, they come from India, do they not? Therefore, Indians is the correct term. When Columbus stepped foot in America for the first time, he mistakenly called the natives "Indians" because he thought he had arrived in India. You seem to be making the same mistake.

      • Lottery? That's one of the things that the Trump administration is trying to eliminate, since that's the visa that that Uzbek Jihadist Saipov came on. They want a pure merit based immigration. Now, I can see that most people here don't think that the Indians are 70% of the most meritorious people on earth, but that's also a function of what companies think as well. If enough of the Fortune 500 companies decide to import people from Europe or Russia or Hong Kong or Macau or South Africa, that will change
    • You really think this will selectively affect India? Cos I think you'll find the Europeans, Brits and Canadians and Australians have pretty much the same local data retention rules.

      And if the Indians back down whilst all those white countries with the financial reserves to stand their ground until change of govt in 2020 don't , well it's gonna be *all* indians on those visas

      • None of those countries make use of H1-B because those are allies who can easily apply for a high quality O visa if they have the sort of skills you need for H1-B.

        • by Cyberax ( 705495 )
          "O" visas have very strict criteria and they are not obtainable for many qualified people. Moreover, you can't transfer from one employer to another with an "O" visa, while it's trivial for H1B.
      • by gmack ( 197796 )

        You really think this will selectively affect India? Cos I think you'll find the Europeans, Brits and Canadians and Australians have pretty much the same local data retention rules.

        No they don't actually. The EU/Canada rules are that the data must be stored somewhere with adequate privacy protection.

    • by Cederic ( 9623 )

      Why is it absurd? Factor in local wages, ease of working abroad, ability to speak English, relative living conditions and the number of STEM graduates and India is easily justified as the top source of H1-B staff.

  • by fafalone ( 633739 ) on Thursday June 20, 2019 @09:44PM (#58797304)
    H1B is so ridiculously abused anything that disrupts the system is helpful. They don't even enforce the rules there are, with H1Bs being trained by the Americans they're replacing for a fraction of the cost. H1B should have a pay floor in the six digits or proof American employees and applicants couldn't be readily trained on whatever hyper specific thing they want, as audited by an independent 3rd party at their expense. That said, tying this to data storage requirements is pretty stupid as they're only related by 'the cyber'.
    • Comment removed based on user account deletion
    • they'll just get them from another country. If you want to stop H1-B abuses you've got to stop voting for pro-corporate politicians that accept corporate PAC money.

      If you want to know who's taking bribes see here [opensecrets.org]. And if you want somebody to vote for that refuses bribes the Democratic party has a wing [justicedemocrats.com] that makes it a requirement to join. I don't know of a GOP equivalent though but if anybody does please chime in.
  • visas need to be capped USC first! Not just IT

  • by junglee_iitk ( 651040 ) on Thursday June 20, 2019 @10:06PM (#58797384)

    I think India should embrace this. 150 billion IT industry is not being run by H1B, it just allows some big companies to pay less than the smaller ones because they dangle the carrot of H1B in front of young workers who want to see the world. This will reduce employee abuse in such companies, and allow more work to travel to India beside "UI".

  • by Anonymous Coward

    H1B is for when companies can't find the expertise they need otherwise, so set a minimum wage for H1B jobs of say $150-$250K/year and remove all caps

    If they really need the expertise, they will pay it, and be happy to get the manpwer

    If they are just looking to undercut local pay, they won't.

    index the pay to inflation so that it doesn't have to be manually adjusted again and see what companies do.

    • Ted Cruz had that idea when he ran for president - have a minimum wage of the range you mention, so that only those really good (or at least expensive) can come
  • by Antony T Curtis ( 89990 ) on Thursday June 20, 2019 @10:47PM (#58797504) Homepage Journal

    When corporations cannot move people to the jobs, they'll move the jobs to the people. With improvements to telecommunications, does anyone really believe that IT work must be done from a specific location on the planet?

    • When corporations cannot move people to the jobs, they'll move the jobs to the people. With improvements to telecommunications, does anyone really believe that IT work must be done from a specific location on the planet?

      I've once worked on a project where some of the people worked in Europe and I recall some very early teleconferences so that the people in the distant office could speak with us before the end of their work day. The time delay, the inability to simply pick up a phone to talk to them, all meant a lot of waiting.

      There is no need to be in a specific location, but there is a need to keep people communicating. If I'm at my desk working and I have a question for someone halfway around the world that is asleep means that I will have to craft an e-mail and wait for an answer, try to find the answer myself, or contrive a workaround. If the person was in the next cubicle, or even in the next time zone, then things would have worked far more easily.

      • I was in this situation several years ago - it wasn't so much an outsourcing issue, as much as a merger b/w 2 companies - one US, one Japanese - and one of our tasks were to integrate our ways of doing things. So this would occasionally involve teleconferences or phone calls to Japan. Since we were in the Bay Area, it had to be our evening and their next day morning. Or, sometimes, I'd allow them to call me home at my 3am if there was something we wanted to urgently close on.

        Aside from what you pointed

    • by ph1ll ( 587130 )

      "With improvements to telecommunications, does anyone really believe that IT work must be done from a specific location on the planet?"

      Why haven't they moved all IT jobs to India already?

      We've had great telecoms for literally years now. Ask yourself: with great telecoms, why have we not exported all IT to low-cost countries? We do we still have an H1B visa program? Even H1Bs are much, much more expensive than a guy in India.

      MBAs can pretend offshoring IT works but I'm an empiricist. If the data disagree

  • by ErichTheRed ( 39327 ) on Friday June 21, 2019 @08:38AM (#58798806)

    I work for an IT services company (a US citizen in the US.) I've seen the H-1B visa used to import some extremely smart and talented people to work at tech companies...these people aren't the issue; tech companies pay them well and they usually end up settling here. The core problem is the secondary labor market that the IT outsourcing companies use the visa to create. I've been at this for over 20 years now and have been through a couple of offshorings/outsourcings. All of these outsourcers are chasing the lowest possible cost to make margin on a deal. One of the ways they do this is sending all the work offshore. But when they can't realistically do that, they use the work visa system to create a revolving door of lower-paid workers. They'll use the L-1 and business visit visas as much as they can, and swap in one of their H-1B slots when companies need a more permanent resource on-site. Being someone who cares about what little bit of a "profession" we have in IT and SW dev, my main worry is that no one is going to see a future in IT and we're going to have even fewer entry-level trainees. You need that career ladder to grow smart people...a degree, coder bootcamp or a vendor certification only prepares you part of the way and (IMO) the best people in our field came up learning the basics in entry-level positions.

    I think some give has to happen on all sides. First, the loopholes that the outsourcers use to swap people in and out on visas need to be closed. Also, unfortunately we techies need to realize that there actually is a soft salary cap on our work unless we're willing to put in 100 hour weeks at a FAANG company or similar. This salary gets pushed down by outsourcers exploiting these loopholes, but we need to be real and realize we're not going to get paid like doctors and lawyers for basic work. Finally, I think there'd be less pressure to use outsourced IT if tech companies didn't have to pay the totally insane salaries they do for people in Silicon Valley. I read somewhere that $110K is the real poverty line there when you factor in housing costs...which has them paying $250K or more for basic work. If companies didn't insist that everyone be packed in a "team room" shooting Nerf guns at each other and "doing Agile," they could branch out to places that were cheaper.

    • As near as I can tell Greencards have gotten easier to get. An H1-B visa is a path to a Greencard which then opens up the slot for another H1-B.

      Honestly if we had systems in place like Single Payer Healthcare & Tuition Free Colleges so that the wealth the H1-Bs generate made it to me and mine I wouldn't care so much. But America's a dog eat dog country for workers where your entire quality of life depends on your job, and H1-Bs take highly desirable jobs while ratcheting up the requirements for entr
    • by chihowa ( 366380 )

      be real and realize we're not going to get paid like doctors and lawyers for basic work

      Doctors and lawyers "get paid like doctors and lawyers for basic work" because they have a legally entrenched guild and licensing system in place. That's always an option, if you can come to terms with the ideological implications of it.

It is not best to swap horses while crossing the river. -- Abraham Lincoln

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